S-0385.3  _______________________________________________

                         SENATE BILL 5503

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Senators T. Sheldon, Haugen and Swecker

Read first time 01/25/1999.  Referred to Committee on Ways & Means.

Changing provisions relating to sewer service.

    AN ACT Relating to business and occupation and utility tax deductions for small water, sewer, and irrigation districts with less than one thousand five hundred customers; amending RCW 82.04.312 and 82.16.042; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 82.04.312 and 1998 c 316 s 1 are each amended to read as follows:

    (1) This chapter does not apply to amounts received for water or sewer services supplied by a water-sewer district established under Title 57 RCW or by an irrigation district established under Title 87 RCW that:

    (a) Has less than one thousand five hundred connections; and

    (b) Charges residential water or sewer rates that exceed one hundred twenty-five percent of the state-wide average residential water or sewer rate published on or before July 1st of each year by the department of health.

    (2) This chapter does not apply to amounts received for water or sewer services supplied by a water or sewer system that:

    (a) Is operated or owned by a qualified satellite management agency under RCW 70.116.134;

    (b) Has less than two hundred connections; and

    (c) Charges residential water or sewer rates that exceed one hundred twenty-five percent of the state-wide average residential water or sewer rate published on or before July 1st of each year by the department of health.

    (3) This chapter does not apply to amounts received for sewerage collection services supplied by a water-sewer district established under Title 57 RCW or by an irrigation district established under Title 87 RCW that:

(a) Has less than one thousand five hundred connections; and

(b) Charges residential sewer rates that exceed one hundred twenty-five percent of the state-wide average residential sewer rate published on or before July 1st of each year by the department of ecology.

(4) To receive an exemption under this section, the water-sewer district, the water or sewer system or irrigation district shall supply to the department of revenue proof that an amount equal to at least ninety percent of the value of the exemption shall be expended to repair, equip, maintain, and upgrade the water or sewer system.

    (((4))) (5) The department of health and ecology may use rate information provided in surveys and reports produced by the association of Washington cities, an association of elected officials, or other municipal association to estimate a state-wide average residential water and sewer rate.

    (((5))) (6) This section expires July 1, 2004.

    Sec. 2.  RCW 82.16.042 and 1998 c 316 s 2 are each amended to read as follows:

    (1) This chapter does not apply to amounts received for water or sewer services supplied by a water-sewer district established under Title 57 RCW or by an irrigation district established under Title 87 RCW that:

    (a) Has less than one thousand five hundred connections; and

    (b) Charges residential water or sewer rates that exceed one hundred twenty-five percent of the state-wide average residential water or sewer rate published on or before July 1st of each year by the department of health.

    (2) This chapter does not apply to amounts received for water services supplied by a water or sewer system that:

    (a) Is operated or owned by a qualified satellite management agency under RCW 70.116.134;

    (b) Has less than two hundred connections; and

    (c) Charges residential water or sewer rates that exceed one hundred twenty-five percent of the state-wide average residential water or sewer rate.

    (3) This chapter does not apply to amounts received for sewerage collection services supplied by a water-sewer district established under Title 57 RCW or by an irrigation district established under Title 87 RCW that:

(a) Has less than one thousand five hundred connections; and

(b) Charges residential sewer rates that exceed one hundred twenty-five percent of the state-wide average residential sewer rate published on or before July 1st of each year by the department of ecology.

(4) To receive an exemption under this section, the water-sewer district, the water or sewer system, or irrigation district shall supply to the department of revenue proof that an amount equal to at least ninety percent of the value of the exemption shall be expended to repair, equip, maintain, and upgrade the water or sewer system.

    (((4))) (5) For the purposes of this section, "state-wide average residential water rate and state-wide average residential sewer rate" means the state-wide average residential water or sewer rate published under RCW 82.04.312.

    (((5))) (6) This section expires July 1, ((2004)) 2005.

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